Disney Feels The Recession

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Today Disney reported a 32% drop in net income for the first quarter, and blamed it on the faltering economy. The overall revenue decreased by 8% to $9.6 billion. Net income was reported at $845 million, down from $1.25 billion the year prior. While attendance at the theme parks has slowed, the most marked decreases were in television advertising revenue and DVD sales. It’s likely just the first wave of bad news this week from the media world- Time Warner will report quarterly earnings Wednesday, and analysts are hardly optimistic.

More on Disney at LA Times, Variety, Reuters